Can anyone explain their experience with SBA backed loan post closing?

July 06, 2020

by a searcher from University of South Alabama in Mobile, AL, USA

I’m particularly interested financial reporting requirements but general pros/cons would be helpful. PM me if you’d prefer.

thanks-
wilson

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Reply by a searcher
from The University of Michigan in 1075 Gills Dr, Orlando, FL 32824, USA

I worked with ^redacted‌ at Live Oak and the reporting requirements have been minimal. As Colin outlined, I submit annual tax returns and quarterly statements. Since you are already creating these documents the reporting is a non-issue. My understanding from speaking to others with traditional (non-SBA) loans is that the reporting can be more cumbersome. They typically have tight covenants and if you break one then they will require financial reports more often.

Reply by a lender
from University of Missouri in St. Louis, MO, USA

It is typically driven by the bank as well as the size of the deal. Most banks require annual tax returns (company and personal) and a PFS for their SBA requirements. If the loan is of size (>$1 million) then we would usually require quarterly financials and possible Aging/Inventory reports if applicable. CPA audits are pretty rare on SBA loans, but I usually recommend a review if you are borrowing >$2 million. This will help if you want to either make another acquisition, or sell down the line..

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